The dependency of Facebook and Zynga on each other’s performance has once again come into question. Despite Zynga ‘s desperate efforts to stop their downfall it sees that there is hardly a day that goes by where there is  not some negative news regarding Zynga. The latest blow is that of them laying off 5% of its workforce with them closing their U.K., Japan and Boston offices.

CEO mark Zuckerberg was quick to blame Zynga’s poor performance as a reason for Facebook’s drop in revenues. Zynga’s current revenues only account for 7% of Facebook’s revenues which is in contrast to the 12% last year. This significant drop further puts pressure on their problematic relationship. Currently online players are spending 20% less on Zynga’s games which means Facebook is also loosing revenues According to CEO Mark Zuckerberg overall gaming revenues have increased by 40% except those of Zynga.

It remains to be seen how Zynga will manage to turn things around. Facebook have clicked on to the fact that mobile is the way forward. Their stock price took a 10% jump in after-hours trading after they announced their third quarter earnings, According to Facebook over 14% of its revenue came from its mobile sector for the third quarter. They also recorded an impressive 61% increase in their mobile monthly active users which resulted in 604 million for the quarter.

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